0CT - NOV 2021
s i h t s ’ 0 8 e h t o t k c a b u o y g n i k to a t 9 s i e g a P RAB t u o k c e h C ! n o t s ’ a n e o S d y d a n d a i l y o t r H a P y a d i l o H e ! h h t a r k o e f b r e e t R o t s o Regis t o h p r u o y n i d n e s forget to
2 | OCTOBER - NOVEMBER 2021
STAFF EXECUTIVE DIRECTOR John Eischen, John@RochesterAreaBuilders.com STAFF
Online Permit Submission
UPDATE!
Shelly Bahlmann, Shelly@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update
Audra Bolduan, Audra@RochesterAreaBuilders.com Builders Exchange Trustees and Showcase Committee, Website
Rebekah Fierst, Rebekah@RochesterAreaBuilders.com Ambassadors, Awards, Builders, Bags & Brews, Commercial Builders Council, Community Relations, Education, Membership, Fashion Show, Program, Remodelers Council, Executive & Remodelers Tour, 40 Below GOVERNMENT & PUBLIC AFFAIRS CONSULTANT
Rick Dold, Rick@GodwinDold.com
BOARD OF DIRECTORS PRESIDENT
Luke Stier, Stier Construction, Inc. VICE PRESIDENT Becky Holmen, Haley Lighting SECRETARY
Jennifer Mitchell, Edina Realty TREASURER
Jesse Buhl, MedCity Consulting PAST PRESIDENT
Alissa Moe, Bremer Bank DIRECTORS
Adam Giannini, Meyer Borgman Johnson Jennifer Lawver, ERH Developing, Inc. Tom Leimer, Knutson Construction Jason Scrimshaw, Kimley-Horn & Associates, Inc. Charlie Sweeney, Kraus-Anderson Construction Melissa Barbour, TLS Companies, LLC Megan Gallagher, Solar Connection
BUILDERS EXCHANGE COUNCIL CHAIR
Kurt Hoeger, United Rentals
COMMERCIAL BUILDERS COUNCIL CHAIR Jim Oeltjenbruns, F&M Community Bank DEVELOPMENT COUNCIL CHAIR Hal Henderson, HGA Architects & Engineers
When submitting your permit online doing the following will greatly improve your chances of acceptance, speedy processing, and approval. 1. Use your PDF software to optimize your plan before submitting a.
Optimizing the plan allows the city departments to more effectively process your submittal within the system.
b.
Optimizing the plan will also improve the City’s ability to efficiently review your plans.
2. Only submit one Drawing per permit that includes all building and site plan information a.
The drawing should include the mechanical and plumbing information.
b.
Any other plan information you submit should be submitted as additional information and not as a drawing.
c.
You are allowed as much information as you need for your submittal, but each submittal should only have one drawing.
d.
Submitting more than one drawing may cause the rejection of your submittal.
e.
In the event your submittal is not rejected with more than one drawing, having more than one drawing results in multiple approvals within each which delays the process and approval of your application.
Use the link below to check the status of permits filed with the City of Rochester Agency Counter: https://rochestermn.agencycounter.com/m/home
REMODELERS COUNCIL CHAIR
Kailee Klevan, Beyond Kitchens 40 BELOW CHAIR Katie Olson, Kimley-Horn & Associates, Inc. NATIONAL LIFE DIRECTORS
Steve Buss, Cornerstone Builders & Real Estate, Inc. NATIONAL DIRECTORS Dana Hlebichuk, Widseth
Levi Kaiser, Benike Construction (Rep) Todd Severson, TLS Companies, LLC STATE DIRECTORS
Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. (Rep) Kathy Einck, Maplewood Homes.LLC John McGuine, JM Consulting Dan Severson, Dan Severson Builders, Inc., Kenneth Bush, Bush Companies
MISSION STATEMENT The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota. We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials.
3 | FOUNDATIONS NEWSLTR
7 10
9 UPDATE..............................................................2
Online permit update
RAB CALENDAR...................................................4
November 2021
FAREWELL..........................................................5
Audra
LETTER FROM RAB PRESIDENT............................5
12
STUDS, STRUTS & ST ET TOS
14
NAHB EYE ON HOUSING.....................................16
Remodeling Industry Confidence Improves Year over Year
NAHB EYE ON HOUSING.....................................18
Strong Demand Boosts Builder Confidence
BUILDING PERMITS...........................................22
Rochester, Byron & Pine Island
OLMSTED BUILDING PERMITS ...........................23
Luke Stier, Stier Construction, 2021 RAB President
September 2021
NEW MEMBER WELCOME.....................................6
SEMR HISTORICAL OVERVIEW............................23
October 2021
OCTOBER NETWORKING NIGHT............................7
Cambria
September 2021
NAHB EYE ON HOUSING.....................................24
Falling Lumber, Concrete Prices
RAB HOLIDAY PARTY...........................................9
Registration Information
STUDS, STRUTS & STILETTOS.......................10-11
Thank Yous & Awards
HOME SHOW................................................12-13
Booth Registration Information & Kitchens for Kids
JOB SHADOWING..............................................14
D C
DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.
Host Information
COMMUNITY DEVELOPMENT..............................15
Online Permit Process
C OMMERCIAL C B UILDERS
OUNCIL
a division of Rochester Area Builders, Inc.
4 | OCTOBER - NOVEMBER 2021
November 2021 Sunday
Monday
Tuesday 1
12:00 PM Government Affairs Committee
7
2 8:00 AM Remodelers Council Exec.
Thursday 3
7:30 AM CBC General Exec.
3:30 PM Builders Exchange Board of Trustees
9 3:00 PM Board Meeting
10
4
5
6
11
12
13
18
19
20
25
26
27
7:30 AM Green Building Committee VETERAN’ S DAY
16
17 12:00 PM Ambassadors Committee
22
23
11:30 AM Home Show Committee
28
Saturday
11:30 AM Program Committee
4:30 PM 40 Below Exec.
15
21
Friday
11:30 AM Executive Committee
8
14
Wednesday
7:30 AM Membership Committee
24 3:00 PM Development Services Advisory Committee
29
30
MEETINGS ARE NOW BEING HELD IN PERSON UNLESS NOTIFIED DIFFERENTLY BY JOHN
5 | FOUNDATIONS NEWSLTR
FROM THE PRESIDENT some self-reflection and to focus on the big picture. For me, this could not have happened at a better time. I needed to get away from the grind we all seem to fall into when this time of year rolls around. I have returned with a new outlook on things and ready to take on whats ahead of me. I encourage you to have an outlet to get away when needed and recharge the batteries. Having a support group of similar businesses that relate to your challenges can be greatly beneficial, and they may see things that you cannot.
LUKE STIER President
Rochester Area Builders, Inc As some of you know, I am a member of a national group call Remodelers Advantage. I recently returned from a much-needed roundtables group get away in Atlanta early this week, and it was pretty eye opening. Dealing with the everyday challenges of our current industry can really take a toll on our well-being, and sometimes we need a little time away for
A big thank you to all that participated in the job shadow program! I heard it was another big success, and we all know how imperative it is to increase the future workforce. Your contributions are appreciated by all! Congratulations to all participants and award winners at our Studs Struts and Stilettos event! What a fantastic opportunity to showcase our creativity, and it all goes to a great cause! Thank you to all that participated and made this night another tremendous success. Mark your calendars for networking night at the Cambria Gallery on October 26th 4:30-6:30 pm. You supply the
conversation, we supply the hors-d’oeuvres and refreshments. See you there! 40 Below has a professional development workshop on October 27th at 7:30am on Mental Health & Wellness. Non 40 Below members are welcome to attend (must register in advance). Make sure to plan for this year’s Holiday Party! We do have sponsorships available, so please contact RAB office if interested. Got pictures of your mullet or shoulder pads you want to show off? Send your photos from the ‘eighties to rebekah@ rochesterareabuilders.com. Seriously, we all want to see these. Event will be held at the Hilton Hotel, 10 East Center Street, Friday December 10th from 6-9 pm. We are currently at about 63% with Home Show registrants. So please get your booth reserved soon if you plan to exhibit.
Luke Stier Stier Construction 2021 RAB President
Wishing Audra Much Success And Happiness In Her New Venture After 23 years with Rochester Area Builders, Audra Bolduan has decided to change careers. Audra officially became an employee on November 1, 1998. She has served in ever evolving roles as Plan Room and Website Director, Showcase of Homes staff lead, BER Golf staff lead, and wherever else she may be needed. She’s been an asset to the association and our members and she will be missed by all. We wish Audra well as she begins her new career path as a therapist with Zumbro Valley Mental Health. I believe she will be a
wonderful therapist as she is known for asking numerous questions during our staff meetings and often begins the day not with good morning, but a question about an issue or upcoming event. Good luck Audra and thank you for your hard work and dedication to the association and putting up with me for almost half of your time at RAB!
John Eischen Executive Director
6 | OCTOBER - NOVEMBER 2021
ROCHESTER AREA BUILDERS, INC.
MEMBERSHIP REPORT September 2021 Membership Total: Retention rate:
404 90.4
WELCOME
OCTOBER 2021 MEMBER
As of September 30, 2021 ONE TO FOUR YEARS Heartland Gun Club & Range.........................2020 Premiere Artisan Design & Build..................2020 Continuum Financial Group...........................2019 Southeastern MN Multi-County HRA............2017
FIVE TO NINE YEARS City of Lanesboro..........................................................2016 Destination Medical Center EDA..............................2016 Creative Curb Appeal..................................................2015 St. Charles EDA.............................................................2015 Heartland Security Services, LLC ...........................2014
TEN TO 19 YEARS Nuss Truck & Equipment...........................................2010 Advanced Builders & Remodeling...........................2007 Eckert Construction, Inc..............................................2007 Penz Custom Homes, Inc...........................................2006 Mike Allen Homes, LLC...............................................2005
20 YEARS & MORE The Home Depot..............................................2005 Jim Whiting Nursery & Garden Center, Inc...2003 507 Communications, LLC..............................2002 David Reiland Building Contractor, LLC.......2002 Goodin Company..............................................2001 United Rentals.................................................2000 Werner Electric................................................1999 Leyendecker Homebuilders, LLC...................1996 Ryan Windows & Siding, Inc..........................1992 Accord Electric, Inc..........................................1985 Ims Contracting, LLC.......................................1985 Carpet One of Rochester................................1983 Robert Gill Builder, Inc....................................1963
HOLLY SATONA
Remodeling Contractor (855) 907-4448 rightchoicewi.com
40 BELOW
PROFESSIONAL DEVELOPMENT Date:
Wednesday, October 27th
Time:
7:30 AM - Breakfast 8:00 AM - Mental Health & Wellness
Location:
Charlie’s Eatery & Pub 1654 Hwy 52 N, Rochester
Fees/Admission: $20 - 40 Below Members $30 - Non-members or Free with Membership Application
Challenges to mental and emotional well-being and mental health disorders are increasingly common among young adults in the U.S. Join guest speaker, Mental Health First Aid Certified Trainer Kate Noelke, for this 45 minute presentation and 15 minute Q&A to learn more about Mental Health First Aid, how mental health challenges impact people, families, organizations and culture; and to gain some important skills in listening without judgement.
Register HERE to by October 25th to be guaranteed a meal.
7 | FOUNDATIONS NEWSLTR
OCTOBER NETWORKING NIGHT Tuesday, October 26th 4:30pm – 6:30pm Hosted by Cambria 400 S Broadway, Suite 105 Join us at Cambria Gallery for networking, ho hors d'oeuvres and refreshments! It will be a great evening to establish new relationships within RAB and stay connected with current ones. We look forward to seeing you there! REGISTER HERE
8 | OCTOBER - NOVEMBER 2021
Make a direct impact. We’re building our Rochester team.
Check out our Rochester Office Career Opportunities!
EDS NEYOU IISG WANT FOR U! YOISG!
bit.ly/ISGRochJobs
Architecture + Engineering + Environmental + Planning | ISGInc.com
#ISGRochLaunch
PE R CE N
T
EMPL
10
0
2021
R
NED W
EEOY O
2021
9 | FOUNDATIONS NEWSLTR
1980’s
Holiday Party DECEMBER 10TH
6:00 PM
HILTON HOTEL 10 EAST CENTER STREET ROCHESTER, MN 55904 Share your 80’s photos with us by sending them to Rebekah@RochesterAreaBuilders.com
Tickets & Sponsorships
Sponsorship Opportunities
Gnarly
totally rad
rad
ENTITLEMENTS
$850
$650
$325
Logo Projected on Screen at Event
X
Verbal Recogni on at Event
X
Sponsor Logo on Signage
X
Sponsor Lis ng in Newsle er
X
Sponsor Lis ng on Website
X
8 Drink Tickets
X
X
8 Tickets to Event ($60/ cket)
X
X
Company Name on Reserved Table
X
X
X
4 Drink Tickets
X
4 Tickets to Event ($60/ticket)
X
10 | OCTOBER - NOVEMBER 2021
A SPECIAL THANK YOU DESIGNERS
Allweather Roof Carpet One CRW architecture + design group Edina Realty First Alliance Credit Union Gerhard’s Kitchen & Bath Store Haley Lighting NAWIC Ohly Law Office Stier Construction/Design Studio B/ Mike Allen Homes/A.Berry Hair Threshold Arts Vicki Nelson of Elcor Realty
FOUNDATION SPONSOR Bremer Bank
GROUNDBREAKING SPONSOR Charlie’s Eatery & Pub
MEDIA SPONSOR ABC 6 News KAAL TV
FINISHING SPONSORS Allweather Roof Premier Bank
VAULT+ SPONSOR Tulip Tree Studios
VAULT SPONSOR Jan & Rich Vetter
HOUSEWARMING SPONSORS Beyond Kitchens 507 Communications, LLC
STUDS, STRUTS & ST ET TOS
FRAMING SPONSORS
Altra Federal Credit Union Associated Bank First Alliance Credit Union Gerhards - Kitchen & Bath Store Home Federal Savings Bank Merit Contracting, Inc. Think Bank TLS Companies, LLC U.S. Bank Wells Fargo Home Mortgage
ROUGH-IN SPONSORS
CRW architecture + design group, inc. Design Studio B Elsmore Plumbing, LLC Godwin Dold Knutson Construction Services Madery Construction, LLC Maxwell Anderson Allstate Agency Meyer Borgman Johnson, Inc. Mike Allen Homes, LLC Ryan Window & Siding, Inc. Stier Construction, Inc.
EVENT PARTNERS Aventi Entertainment Faulhaber Foto Rocco Altobelli
11 | FOUNDATIONS NEWSLTR
2021 AWARD WINNERS
Best of Show Best Interpretation of Theme Launch of the First Hot Air Balloon Stier Construction, Design Studio B, Mike Allen Homes, A.Berry Hair
Most Wearable
William Shakespeare Carpet One
#STRUTFORHUMANITY
People’s Choice Most Innovative Use of Building Materials Washington National Cathedral Haley Lighting
Habitat’s Choice
The Salem Witch Trials Threshold Arts
12 | OCTOBER - NOVEMBER 2021
ROCHESTER AREA BUILDERS HOME SHOW 43 Annual rd
FEBRUARY 4, 5, & 6, 2022 ALL BOOTHS ON ONE FLOOR! CHECK OUT THE 2022 HOME SHOW MAP
1.
Ease of entrance for a�endees, right off the skyway.
2.
Easy access to the exhibit space (only one Ballroom door won’t be open, due to the �cket booth).
3.
Less Confusion. One floor, one area. No need to worry about if a�endees saw all the exhibitors.
4.
New booth spaces in the Ballroom lobby area.
5.
Friday night ac�vity area and theseminar areas more visible and integrated with the rest of the show.
BOOTH REGISTRATION IS OPEN! RESERVE YOUR BOOTH TODAY! Registra�on and Exhibitor Informa�on can be found HERE.
Please contact Shelly with ques�ons.
13 | FOUNDATIONS NEWSLTR
ROCHESTER AREA BUILDERS HOME SHOW 2022
We want your talent to be a part of supporting single moms and their children. The 2022 RAB Home Show will be featuring “Kitchens for Kids” – play kitchens for young children made by members of our community. Proceeds benefit Jeremiah Program. We invite you to be a part of this exciting activity! A raffle will be held during the event. The people’s choice winner will be determined by the largest number of raffle tickets for each project. These great mini-kitchens will be for children’s use but the raffle profits will go toward Jeremiah Program in Rochester MN. Jeremiah’s proven, holistic approach begins with establishing a supportive community for single mothers to pursue a career-track, college education. Through a combination of quality early childhood education, a safe and affordable place to live, and empowerment and life skills training, families find stability and a path out of poverty. You can also be a part of the Home Show and connect with customers by securing a 10’x10’ booth for the entire weekend (Friday, Saturday, and Sunday). Display, educate, and/or promote your business! Cost starts at $730. Go to RochesterAreaBuilders.com/home-show to register a booth!
February 4-5-6, 2022 Mayo Civic Center
Presented by
Benefit For
Find the registration form at rochesterareabuilders.com/ home-show-exhibitor-page/
Questions about the project? Contact Shelly@RochesterAreaBuilders.com Ph 507-282-7698
14 | OCTOBER - NOVEMBER 2021
14 | FOUNDATIONS NEWSLTR
Rochester Area Builders members were excited to host Kasson-Mantorville high school students once again this fall as part of our job shadow program. Thank you to all of the participating companies for showing students the ins and outs of your profession! If your company is interested in hosting a student we have another opportunity this spring, April 28th. Contact Rebekah to be put on the list to be notified.
Benike Construction Bigelow Homes CRW architecture + design group Custom Retaining Walls and Landscaping, Inc. Design Studio B Elcor Construction Chad Carpenter of Elcor Realty Knutson Constuction Nuss Truck & Equiptment Pompeii Painting, Inc. Rochester Chevrolet Ryan Windows & Siding Solar Connection Tulip Tree Studios Valor Mechanical JOB SHADOW HOSTS Widseth More photos on Facebook
15 | FOUNDATIONS NEWSLTR
City of Rochester, Minnesota 4001 W River Parkway NW, Suite 100 Rochester, MN 55901-7090
Phone: 507-328-2600 Fax: 507-328-2601 Email: buildingsafety@rochestermn.gov
The City of Rochester has launched new online services to streamline the permitting process. Read the full press release here: https://www.rochestermn.gov/Home/Components/News/News/8361/1121 Highlights of these enhancements include new appliance permits, online trust account payments, and automatic issuance of permits. What does this mean for you? Read on to find out! New Appliance permits – Licensed contractors can now apply for appliance permits online through Citizen Access (furnace, air conditioner, water heaters, and the associated electrical for appliances) as well as pay for the permit using a Trust Account or Credit Card. The permit will automatically issue without going through administrative review. This fast, convenient process allows you to better serve your customers. Trust Accounts in Citizen Access – All contractors with Trust Accounts can now use their trust accounts in Citizen Access to pay for permits by following these three easy steps. 1. Admin staff will intake your permit application, review it for accuracy, and formally accept the permit. 2. Upon acceptance, an automated email will be sent to the applicant, letting them know the permit is ready for payment. 3. The applicant will then log in to their Citizen Access account to make payment using either a Trust Account or a credit card. Other Updates
The City of Rochester has implemented a new kiosk available in the Development Services Infrastructure Center lobby to assist our customers with online permit submission and payments. One-on-one training is available! If you would like assistance navigating the Citizen Access portal, applying for permit applications, or scheduling inspections, please feel free to stop by or call our office at 507-328-2600 to schedule a training session. A push toward paper-free! o You will no longer receive a copy of your permit and receipt in the mail. All documents are now available in Citizen Access for you to download at your convenience. o Residential projects no longer require documents on-site. Building permits, inspection cards, and approved plans are electronic, so no need to print your documents!
Step-by-step guidance, located here Applications, Forms, and Guides COMING SOON: Beginning early 2022, the Community Development Department will begin implementing a fully paperless permitting process which will eliminate all paper applications received via email, fax, or walk-in submissions. Stay tuned for further updates!
16 | OCTOBER - NOVEMBER 2021
Remodeling Industry Confidence Improves Year over Year
BY PAUL EMRATH on OCTOBER 14, 2021
The NAHB/Royal Building Products Remodeling Market Index (RMI) for the third quarter posted a reading of 87, up five points from the third quarter of 2020. The reading is a sign of positive residential remodeler sentiment for projects of all sizes.
The RMI is based on a survey that asks remodelers to rate various aspects of the remodeling market “good,” “fair” or “poor.” Responses from each question are converted to an index that lies on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor. The RMI is an average of two major component indices: the Current Conditions Index, and the Future Indicators Index. The Current Conditions Index, in turn, is an average of three subcomponents: the current market for large remodeling projects ($50,000 or more), moderately-sized projects ($20,000 to $49,999), and small projects (under $20,000). In the third quarter of 2021, the Current Conditions Index was 90, a four-point increase from the third quarter of 2020. All subcomponents also posted increases compared to the third quarter of last year: large remodeling projects rose six points to 86, moderately-sized remodeling projects increased five points to 91 and small remodeling projects inched up one point to 91.
The Future Indicators Index is an average of two subcomponents: the current rate at which leads and
inquiries are coming in and the current backlog of remodeling projects. In the third quarter, the Future Indicator Index was 84, up seven points from third quarter of 2020. Both subcomponents increased as well: the current rate at which leads and inquiries are coming in rose five points to 83 and the backlog of remodeling jobs climbed eight points to 85.
There is strong demand and continued optimism in the residential remodeling market, despite the fact that supply constraints are severe and widespread. For example, well over 90% of remodelers in the third quarter RMI survey reported a shortage of carpenters. And 57% of remodelers reported having slightly raised prices for projects over the last six months, with another 28% indicating a significant increase in price, due in part to higher material costs and ongoing strong demand. Half of these remodelers reported some pricing out of demand due to higher prices for remodeling projects.
There is not yet enough history to seasonally adjust the current version of the RMI. For that reason, results cannot be meaningfully compared to the previous quarter. To track quarterly trends, the survey asks remodelers to compare market conditions to three months earlier, using a ‘better,’ ‘about the same,’ ‘worse’ scale. In the third quarter, 78 percent of respondents said that the current market was “about the same” as it was three months earlier. For the full set of RMI tables, including regional indices and a complete history for each RMI component, please visit NAHB’s RMI web page.
17 | FOUNDATIONS NEWSLTR
To those who courageously gave their lives... and those whom bravely fight today...
THANK YOU!
Veteran's Day November 11, 2021
| BankonONB.com |
18 | OCTOBER - NOVEMBER 2021
Strong Demand Boosts Builder Confidence Despite Supply Chain Disruptions BY ROBERT DIETZ ON OCTOBER 18, 2021
Strong consumer demand helped push builder confidence higher in October despite growing affordability challenges stemming from rising material prices and shortages. Builder sentiment in the market for newly built single-family homes moved four points higher to 80 in October, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. Despite the increase, builders are getting increasingly concerned about affordability hurdles ahead for most buyers. Building material price increases and bottlenecks persist and interest rates are expected to rise in coming months as the Fed begins to taper its purchase of U.S. Treasuries and mortgage-backed debt. Policymakers must focus on fixing the broken supply chain. This will spur more construction and help ease upward pressure on home prices. Derived from a monthly survey that NAHB has been conducting for 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three major HMI indices posted gains in October. The index gauging current sales conditions rose five points to 87, the component measuring sales expectations in the next six months posted a threepoint gain to 84 and the gauge charting traffic of prospective buyers moved four points higher to 65. Looking at the three-month moving averages for regional HMI scores, the Midwest rose one point to 69, the Northeast held steady at 72, the South and West each remained unchanged at 80 and 83, respectively. The HMI tables can be found at nahb.org/hmi.
19 | FOUNDATIONS NEWSLTR
Goodin Company carries a full complement of products for the markets we serve. Are you in need of products for plumbing, HVAC, industrial, or pump and well applications? We are your Source of Supply, serving the industry since 1937.
PLUMBING
HVAC
Goodin Company maintains a complete inventory in a wide range of major brand plumbing products for both residential and commercial plumbing contractors. To support our plumbing inventory, we maintain showrooms in many of our branch locations.
Our HVAC division encompasses both hydronic and warm air heating as well as central and split system air conditioning equipment for residential and commercial systems. We also provide technical support in design and layout.
INDUSTRIAL
PUMP AND WELL
We supply a wide range of industrial pipe, valves, and fittings. To compliment our pipe inventory, we offer a complete in-house pipe fabrication service in which we are able to cut, thread and groove pipe to our customers’ specifications.
Goodin Company’s pump and well division maintains a complete inventory of pumps and repair parts for the residential water well drilling contractor, as well as the large commercial or municipal driller.
MINNEAPOLIS (612) 588-7811 ST. PAUL (651) 489-8831 DULUTH (218) 727-6670 DETROIT LAKES (218) 847-9211 ST. CLOUD (320) 259-6086
BRAINERD (218) 828-4242 ROCHESTER (507) 529-1284 FARGO (701) 298-3210 SIOUX FALLS (605) 332-3444 OMAHA (402) 331-6813 www.goodinco.com
EAU CLAIRE (715) 830-1800 WAUSAU (715) 675-2513 MADISON (608) 663-0331 MILWAUKEE (262) 781-1770 GREEN BAY (920) 884-9494
20 | OCTOBER - NOVEMBER 2021
We’re in the offering NAHB members up to $1,000 business.
2018 Chevrolet Low Cab Forward 3500HD
2018 Chevrolet Express 2500 Cargo Van
2018 Chevrolet Silverado 2500HD
2018 GMC Sierra 1500
USING THE PRIVATE OFFER FOR NAHB MEMBERS IS EASY: 1. Get your NAHB Proof of Membership by logging into NAHB.org and obtaining your verification form. 2. Visit your local Chevrolet dealer and mention this Private Offer. 3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership. For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm. Example offer for NAHB members who are business owners purchasing a 2018 Chevrolet Express 2500 Cargo Van. Up to
$1,000 Private Offer1
+
$3,750
National Fleet Purchase Program (FVX)2
Up to
+
$1,200
Eligible Accessory Cash Allowance3
Up to
=
$5,950 In Potential Value
¹Private offer amount varies by model. City Express and Low Cab Forward receive a $250 Offer for both Fleet and Retail deliveries. Fleet deliveries on the Buick Enclave, Chevrolet Traverse, Silverado, Express, Suburban, Tahoe, GMC Acadia, Sierra, Savana, Yukon, XL receive a $1,000 Offer. All other Fleet or Retail deliveries receive a $500 Offer. Valid toward the purchase or lease of eligible new 2017 and 2018 model year vehicles. Offer excludes Chevrolet Bolt, Camaro, SS, Corvette, Sonic, Spark, Trax, Volt, Buick Cascada, LaCrosse, Regal, Verano, and all Cadillac vehicles. Additional GM models may be excluded from time to time at GM’s sole discretion. Customer must take delivery by 1/2/2019. Not compatible with some other offers. Not valid on prior purchases. See dealer for details. 2Offer available to qualified fleet customers through 1/2/2019. Not compatible with some other offers. Take delivery by 1/2/2019. See dealer for details. 3To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/non-business-related transportation purposes. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit www.gmbusinesschoice.com. Requires $500 minimum purchase. Cash Allowance will be equal to the amount spent up to $1,200. Not eligible on Associated Accessories from third-party independent suppliers. Not available with some other offers. Take delivery by 1/2/2019. See dealer for details. ©2018 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates, or licensors.
21 | FOUNDATIONS NEWSLTR
22 | JULY - AUGUST 2021
ROCHESTER BUILDING PERMITS NEW RESIDENTIAL
2021
Single Family Dwelling
16
4,883,007
25
8,291,281
Townhome Dwelling
4
1,116,560
5
744,551
Two-Family Houses
0
0
0
Manufactured Home
0
0
Multi-Family Bldgs (Units)
0
0
VALUATION 2020
VALUATION
SEPTEMBER 2021
2012 2013 2014 2015 2016 2017 2018
2019 2020 2021
January
6
19
11
20
25
15
19
6
17
23
February
20
15
14
19
15
20
16
5
13
8
0
March
32
29
28
30
31
44
25
27
32
35
0
0
April
29
39
25
22
33
45
40
23
19
19
0
0
May
22
27
35
19
56
43
28
27
19
26
June
32
33
47
51
41
52
38
31
21
30
July
39
39
38
29
44
45
36
26
26
25
August
38
21
60
33
47
30
31
24
17
24
EXISTING RESIDENTIAL Deck Addition
31
359,273
19
180,400
Room Addition
0
0
4
189,903
Porch Additions
1
30,000
3
41,000
Other Additions
1
7,000
4
229,226
Basement Finish
24
451,989
18
248,248
Alterations
30
462,425
31
480,812
Multi-Family Addition
0
0
0
0
Multi-Family Alterations
4
87,725
6
335,892
September
22
22
23
27
52
35
39
12
30
20
TOTAL
240
244
281
250
344
329
272
180
194
210
October
23
34
35
49
25
36
29
27
28
November
22
26
26
23
12
41
21
47
23
December
14
22
27
42
37
33
25
34
21
TOTAL
299
326
369
369
418
429
347
289
266
210
*Total may differ as permits may have been voided.
NEW COMMERCIAL Assembly (Church)
0
0
0
0
YEAR TO DATE STATISTICS
Assembly (General)
1
989,000
0
0
NO.
Assembly (Restaurant/Bar)
0
0
0
0
Business
0
0
2
1,350,000
Education
0
0
0
0
Factory/Industrial
0
0
0
0
Institution
1
650,000
0
0
Mercantile
0
0
0
0
Miscellaneous
0
0
0
0
Residential (Apartment)
0
0
0
0
Residential (Care/Assisted Living)
0
0
0
0
Residential (Care/Hotel/Motel)
0
0
0
0
Mechanical (HVAC)
Storage (General)
1
490,000
0
0
Mechanical (Gas Piping)
Storage (Parking Garage)
1
2,363,689
0
0
Mechanical (Fireplace)
Storage (Warehouse)
0
0
0
0
Mechanical (Hydronic)
Utility (General)
3
100,000
0
0
Plumbing
Utility (Private Garage)
0
0
0
0
BUILDING PERMITS ISSUED TO DATE
2021 VALUATION
NO.
2020 VALUATION
1725
355,499,023
1433
252,482,229
Single Family Dwelling
186
64,898,729
163
49,900,547
Multi-Family Buildings Total Units: 319
2
37,800,000
3
13,010,000
TRADE PERMITS ISSUED TO DATE
7381
95,564,607
7,166
75,230,830
Electrical
2916
44,545,445
2747
32,842,035
Electrical (Temp. Service)
TOTAL PERMITS YTD
195
81,855
207
74,775
1965
25,522,021
1931
21,849,524
468
593,054
474
743,842
241
1,208,212
218
931,040
121
6,553,963
113
4,527,561
1475
17,060,057
1476
14,262,053
9106
451,063,630
8599
327,713,059
EXISTING COMMERCIAL Addition
1
380,000
1
850,000
29
7,029,392
18
2,609,761
Structural Shell
0
0
2
8,896,511
“White Box”
0
0
0
0
Interior Demolition Only
0
0
1
64,000
Other Phased Permits
0
0
0
0
Alterations
OTHER CONSTRUCTION Business Signs
7
62,165
7
50,900
Advertising Signs
0
0
0
0
Footings & Foundations
9
1,614,600
0
0
Demolition
0
0
3
0
Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/government/departments/building-safety/reports-building-permits/building-permits-2021
SEPTEMBER 2021
PINE ISLAND
BUILDING PERMITS
NEW RESIDENTIAL
NUMBER
VALUATION
Single Family Detached
0
0
Single Family Attached
0
0
Basement Finish
0
0
Deck Addition
0
0
Existing Residential
23 | FOUNDATIONS NEWSLTR
OLMSTED COUNTY PERMITS YTD
2021
VALUATION
2020
VALUATION
20
5,546,312
36
12,957,077
Single Family-Attached
11
1,891,761
0
0
15
784,390
24
1,108,076
Deck
31
236,404
27
150,028
Addition
11
548,850
6
397,262
133
2,008,778
79
1,407,611
6
156,679
2
69,192
RESIDENTIAL
Alterations Garage Addition
VALUATION
Addition
1
121,056
1
422,867
Alterations
8
269,710
10
636,338
Re-roofing
1
3,900
2
8,250
Pool, Retaining Wall, etc.
18
432,414
13
415,671
Manufactured Homes
36
0
34
3,430
161
1,155,339
150
1,709,747
83
825,313
92
1,160,832
555
24,394,813
463
19,973,270
Recreational
0
0
Church/Religious
0
0
0
0 236,059
Industrial/Warehouse
1
2,162,198
Service/Repair Station
0
0
0
0
Store/Restaurant
1
336,786
0
0
Nonresidential Building
2
504,159
1
355,968
TOTAL PERMITS
BYRON NOW INCLUDED IN OLMSTED COUNTY PERMITS
OLMSTED COUNTY PERMITS SEPTEMBER
2020
VALUATION $0 PERMITS 0
BYRON
Mechanical
0
1
2021
MISCELLANEOUS PERMITS Plumbing
0
VALUATION $625,000 PERMITS 2
2020
OTHER STRUCTURES
NEW COMMERCIAL/INDUSTRIAL
VALUATION $1,428,521 PERMITS 16
VALUATION
COMMERCIAL/INDUSTRIAL
Single Family-Detached Garage
2021
NEW RESIDENTIAL
SEPTEMBER 2021
VALUATION $271,002 PERMITS 3
VALUATION $90,982 PERMITS 8
EYOTA
VALUATION $156,360 PERMITS 8
VALUATION $617,733 PERMITS 12
MARION
VALUATION $355,269 PERMITS 17
ORONOCO TWP
VALUATION $46,692 PERMITS 2
VALUATION $0 PERMITS 0
QUINCY
VALUATION $498,496 PERMITS 17
VALUATION $497,782 PERMITS 18
STEWARTVILLE
Activity Overview Key metrics by report month and for year-to-date (YTD) starting from the first of the year.
Key Metrics
Historical Sparkbars
New Listings 9-2018
9-2019
9-2020
9-2021
9-2018
9-2019
9-2020
9-2021
9-2018
9-2019
9-2020
9-2021
9-2018
9-2019
9-2020
9-2021
9-2018
9-2019
9-2020
9-2021
9-2018
9-2019
9-2020
9-2021
9-2018
9-2019
9-2020
9-2021
9-2018
9-2019
9-2020
9-2021
9-2018
9-2019
9-2020
9-2021
9-2018
9-2019
9-2020
9-2021
Pending Sales
Closed Sales
Days on Market
Median Sales Price
Avg. Sales Price
Pct. of Orig. Price Received
Affordability Index
Homes for Sale
Months Supply
9-2020
9-2021
Percent Change
YTD 2020 YTD 2021
642
654
+ 1.9%
5,576
5,683
+ 1.9%
638
554
- 13.2%
5,254
5,139
- 2.2%
660
615
- 6.8%
4,823
4,844
+ 0.4%
44
24
- 45.5%
55
32
- 41.8%
$228,500
$245,500
+ 7.4%
$220,000
$245,000
+ 11.4%
$254,875
$286,499
+ 12.4%
$245,107
$275,847
+ 12.5%
98.5%
99.1%
+ 0.6%
97.6%
100.4%
+ 2.9%
191
173
- 9.4%
198
173
- 12.6%
981
833
- 15.1%
--
--
--
1.8
1.5
- 16.7%
--
--
--
Percent Change
Current as of October 4, 2021. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2021 ShowingTime. | 2
24 | SEPTEMBER - OCTOBER 2021
Falling Lumber, Concrete Prices Offset Steel Increases in September BY DAVID LOGAN on OCTOBER 14, 2021 Prices paid for goods used in residential construction ex-energy decreased 0.8% in September (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The decrease was largely driven by lower lumber and concrete products prices and was the second monthly decline since the start of the last recession. The price index of services inputs to residential construction also decreased in September, driven by smaller gross profit margins of building materials retailers. Despite the monthly decline, building materials prices remain 13.9% higher than they were 12 months earlier and are 11.3% higher than they were in January 2021. Prices increased 4.4% over the same period in 2020. In contrast, the price index of services inputs to residential construction has increased less in 2021 (+9.5%) than it did over the first nine months of 2020 (+11.9%).
Goods Softwood Lumber The PPI for softwood lumber (seasonally adjusted) decreased 3.5% in September after declining 29.0% and 27.7% in July and August, respectively. The slowing of monthly price declines is consistent with cash prices one month earlier, as measured by the Random Lengths Framing Lumber Composite Price (FLCP), as week-over-week declines slowed in August before beginning to increase in September. The PPI of most durable goods for a given month is largely based on prices paid for goods shipped in the survey month. This can result in lags relative to cash market prices during periods of long lead times. The FLCP has increased 36.0% since reaching its most recent trough on August 27th, suggesting the softwood lumber PPI will increase in October.
Ready-Mix Concrete The PPI for ready-mix concrete (RMC) decreased 0.5% in September, the first decline since January 2021. The index for RMC has risen 3.0% over the past 12 months and 4.1% YTD—the largest year-to-date increase in September since 2006. The monthly change in the steel mill products PPI increased by more than 10% only three times (in 1947, 1948, and 2008) over the 80-year period ending in 2020. Monthly increases have exceeded that mark four times in 2021.
Other Building Materials Prices decreased in three of four regions with the largest decline occurring in the West (-2.0%). Prices fell 1.2% and 0.1% in the Northeast and South, respectively, and increased by 0.2% in the Midwest.
Gypsum Products The PPI for gypsum products increased 0.1% in September—the seventh consecutive monthly increase. Although gypsum products prices fell 2.8% between January and September 2020, the index has increased 16.6% YTD in 2021 and 22.6% over the past 12 months.
The chart below shows the 12-month and year-to-date price changes of other price indices relevant to the residential construction industry.
As Congress continues to work on an infrastructure package, the Construction Materials index is particularly salient. This index, which has increased 23.9% year-todate and 32.1% over the past 12 months, is much more heavily weighted with products used in large amounts in the production of “traditional” infrastructure (e.g., roads, bridges, rail). Services The price of services used as inputs to residential construction decreased 2.7% in September after falling 5.7% in August. The monthly decline was entirely driven by a 3.7% drop in the prices for trade services inputs, the index which accounts for roughly two-thirds of the PPI for “inputs to residential construction, services.”
Steel Products Steel mill products prices climbed 5.0% in September following a 5.1% increase in August. July 2020 was the last month prices declined—they are up 134.1% in the 14 months since.
The trade services PPI measures changes in the nominal gross margins for goods sold by retailers and wholesalers. Unsurprisingly, hardware and building materials retailers make up the majority of trade services included as residential construction inputs. The PPI for building materials retailers decreased 5.9% in August while nominal gross margins for building materials wholesalers increased 3.6%.
25 | FOUNDATIONS NEWSLTR
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26 | OCTOBER - NOVEMBER 2021
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27 | FOUNDATIONS NEWSLTR